"Attitudes of clients and banks regarding business lending are improving" - V. Mudryi
For several months in a row, the corporate loan portfolio of OTP Bank has been growing, and the attitudes of clients and banks regarding lending are constantly improving. Volodymyr Mudryi, CEO of OTP Bank, told this in an interview to the Mind edition.
He explained that since the discount rate is gradually decreasing, banks will increase the volume of lending.
"Each client who wants to get a loan first of all tries to get a loan on preferential terms under the "5-7-9" program. If the borrower does not fit into "5-7-9" according to some criteria, he considers other options. First of all, this concerns small and medium-sized businesses, for which the state created this program. If we talk about large corporate clients, they mostly get loans on standard market terms, including foreign currency loans (if there is export revenue). Credit funds are mainly used for current needs, replenishment of working capital," he noted.
According to the banker, in order to restore investment lending in Ukraine, first of all, it is necessary to introduce war risks insurance. "This is the main problem. The way to solve it can be a mechanism that will cover part of the investment component thanks to leasing. There are also programs with the participation of international financial institutions (in particular, the EBRD), which have an investment component. For example, when buying a car with an electric motor, part of the cost of the vehicle is returned to the borrower as a cashback," V. Mudryi emphasized.
He said that the range of international partners offering banks risk-sharing contracts is currently expanding. "It is not only EBRD, but also IFC and DFC. I believe that banks should continue to increase cooperation with financial institutions in order to minimize military risks or distribute them more effectively," said the banker.
He also reminded that OTP Bank currently has a joint program with the USAID Project "Investments for Business Sustainability".Within this programe grants are issued to critical sectors of the economy companies (agriculture, logistics, energy), businesses that need relocation, as well as companies owned or managed by women.
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Public Joint Stock Company OTP Bank is a subsidiary of OTP Bank, which is the largest independent Central-Eastern-European banking group. JSC OTP Bank is one of the largest domestic banks, a recognized leader in the financial sector of Ukraine. The Bank provides a full range of financial services to corporate and private customers, as well as to small and medium enterprises. The bank entered the Ukrainian market in 1998, and since then it enjoys a staunch reputation of socially responsible, reliable and stable institution providing its consumers with services of European quality standard.
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